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WORKING CONDITIONS IN GLOBAL VALUE CHAINS.EVIDENCE FOR EUROPEAN EMPLOYEES

Dagmara Nikulin (), Joanna Wolszczak-Derlacz () and Aleksandra Parteka ()

No 54, GUT FME Working Paper Series A from Faculty of Management and Economics, Gdansk University of Technology

Abstract: This paper investigates how involvement in Global Value Chains (GVCs) affects working conditions. We use linked employer-employee data from the Structure of Earnings Survey merged with industry-level statistics on GVCs based on the World Input-Output Database. The sample consists of almost 9 million workers in 24 European countries in 2014. Given the multidimensional nature of the dependent variable, we compare the estimates resulting from a Mincerian wage model with zero-inflated negative binomial regressions that analyse other aspects of working conditions (overtime work and bonus payments). As to the impact of production fragmentation on social upgrading, wages prove to be negatively related to sectoral GVC involvement. Workers in sectors more deeply involved in GVCs have lower and less stable earnings, meaning worse working conditions; on the other hand, they are also less likely to have to work overtime, which one may see as a sign of better labour standards.

Keywords: working conditions; Global Value Chains; wellbeing of workers; social upgrading (search for similar items in EconPapers)
JEL-codes: F16 F66 J81 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-hme, nep-int and nep-lab
Date: 2019-02
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ftp://ftp.zie.pg.gda.pl/RePEc/gdk/wpaper/WP_GUTFME ... kDerlacz_Parteka.pdf First version, 2019 (application/pdf)

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